Customer Acceptance Can't Process Partial accept/reject

Question

Is the new R12 feature for customer acceptance really must accept or reject a sales order delivery line, and cannot process partial accept / reject?
If so, then this new feature won't matter much i'm afraid.
Can anyone provide any explanation?
Thanks,
Gerry

Answer 1

At first, I imagined that it will have the functionality to accept or reject partial >shipment. The deviation will then be enterred as expected receipt (just as the >RMA receipt would). Upon receiving (querried with the Sales Order number), the >journal created will be Inventory Valuation (material account) against Deferred >COGS. The autoinvoice will pull those that the customer received only (pre-billing >explicit/implicit acceptance). The SO line quantity will be changed with the >quantity that the customer received, and a new line will be created with the >rejected quantity and the status of backordered.I think this logic has a flaw: When you have shipped 10, you have delviery detail for 10 and inventory transaction for 10 (sales order shipment). Hence the accounting is Cr Inventory 1000 (assuming cost is 100) and Dr Deferred COGS 1000. If customer accepts 10 then there is a logical material transaction created for the same and accounting is Cr Deferred COGS 1000 and Dr COGS 1000 and invoice is generated for the order line with whatever is the price of the line.
Instead if the customer accepts only 6?
1. What happens to the orginial accounting entries? As you can see here, this orginal accounting entry has to be updated to match with the accepted quantity. YOu cannot just create logical entry here as quantity has to be received into inventory which will create entries for the same.
Sales order shipment
Cr Inventory 1000
Dr Deferred COGS 1000
COGS Recognition for only 600 leaves 400 in the deferred COGS.
Cr Defered COGS 600
Dr COGS 600
2. You have to update the trasansaction quantity from 10 to 6 as customer accepted only 6. You cannot just create a logical transaction 4 as there are a number of procedures to be followed when returning goods into invnetory (location, quality control and many other processes).
3. You have to synch up the delivery details with the accepted quantity and order line quantities need to be synched up with delivery details. Hassel.
You were saying that there is no way to reverse the entry from deferred COGS to >inventory, but with current functionality, should the customer reject partial >shipment, we must create RMA for the whole line, create a new identical >order/line, ship the accepted quantity, and the rejected quantity will be treated >as backordered. Isn't it the same, but with longer manual steps?A lot is industry or company specific. If the customer accepts partial quantities, you will RMA for the partial quantities not the whole quantity and create a new ship line for the partial quantities again (if the customer wants it and rejected because of quality issues). THis all depends on company to company as we do not know why the customer is rejecting in the first place. Returning for quality reasons, returning for good or cannot accept at this time because they have space issues or simply demand is not there. I agree that it is a pain from the invoicing printing perspective (customer is expecting for only 6 but we send it for 10).
Moreover, with current workaround like that, will it impact the sales order history >report? Will it show double sales order, eventhough the revenue will only >recognize one? (no problem for custom report, but I haven't tested the standard >report).There is no double revenue here as you are squaring off original invoice with an RMA.
I am not defending the Oracle's functionality. This is the first step taken in right direction and I am sure there are lot more changes on the way in this area. So for now, this is what it is.
Bagimana Kabar? Saya kerja di Purwakarta dari dua tahun.
Terima Kasih
Nagamohan Uppara